ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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helped by inflation
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hurt by inflation
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Either A or B
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None of the above
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Detailed explanation-1: -The annual inflation rate for the United States is 6.4% for the 12 months ended January 2023 after rising 6.5% previously, according to U.S. Labor Department data published Feb. 14.
Detailed explanation-2: -The inflation rate is determined by calculating the percentage change in a price index (such as CPI or the GDP deflator). The inflation rate tells us the percentage by which the price level is changing from period to period.
Detailed explanation-3: -US Inflation Rate is at 6.41%, compared to 6.45% last month and 7.48% last year. This is higher than the long term average of 3.28%.
Detailed explanation-4: -Borrowers benefit from unanticipated inflation because the money they pay back is worth less than the money they borrowed.